A properly planned move is synonymous with peace of mind. In particular, cost management must be considered in advance to avoid unpleasant surprises. Since you are about to change your lifestyle, no detail should be overlooked. It is particularly important to anticipate your mobility and it goes without saying that it is preferable to have your own vehicle. In such a context, the new form of leasing as offered by gowago.ch is a particularly interesting solution. gowago.ch is also synonymous with serenity: all brands in leasing, one monthly payment and no surprises.
What is leasing?
Leasing is defined as a tripartite contract. It includes the garage (or dealer), the consumer (you) and the bank that finances the car. The garage provides a vehicle that you lease using the credit granted by the bank. This is essentially a fixed-term lease. At the end of the contract, you return the vehicle to the dealer and stop paying rent. The average leasing period is 2 years but it is possible to sign a longer contract.
Leasing with a purchase option is when the contract provides for a purchase option at the end of the contract. Instead of returning the vehicle, you become the final purchaser and keep the car. This is an interesting option if you stay in the same country for a long time, but also if you liked the characteristics of the leased vehicle. However, becoming an owner means that maintenance and other expenses will now be your sole responsibility.
It is important to know that leasing goes hand in hand with a monthly rate which is calculated on the basis of various criteria. To begin with, the car itself is important (make, model, year of release, etc.). The rate is also estimated in relation to the mileage on the odometer if the vehicle has already been used and to the limit of the kilometers allowed annually. Not forgetting the residual value, i.e. the value that the car concerned will have when the leasing contract comes to an end. This data is not the same for each vehicle, which greatly influences the rates.
What are the mistakes to avoid?
How leasing works
The most common mistake is to misunderstand how leasing works, especially how the rent is calculated. It should be borne in mind that this is a form of leasing subject to interest rates as explained above. It is a common mistake to think that a 0% rate is necessarily more advantageous. This suggests that the monthly payments are calculated on the list price. However, garages offering leasing often apply a discount on the list price. It is therefore more sensible to make comparisons so as not to be fooled.
Do not underestimate the distances you will have to travel during the leasing period. So be careful about the annual mileage, which in most cases ranges from 10,000 km to 20,000 km. If you drive more than the contracted mileage, your dealer will charge you for each excess kilometre, which will automatically increase your final bill. As an indication, the daily distance travelled by Swiss citizens is around 30 km. In theory, the 10,000 km per year should therefore be sufficient. Nevertheless, it is still preferable to make a personalised estimate so as not to make a mistake in your accounts. If you have already thought about your next holiday and intend to use the leased car for your travels, take this into account when estimating the maximum mileage allowed.
Duration of the contract
Pay attention to the duration of the contract. If, for example, you are moving to Switzerland to fulfil a 2-year employment contract, it is not necessary to opt for a 3-year lease. This applies even if you are seriously considering renewing your employment contract. Indeed, early termination is always complicated. Some dealers go so far as to demand the outstanding amount immediately after termination, which is an unnecessary expense since you are no longer going to use the vehicle. It is therefore better to sign a contract for a maximum of 48 months and honour it to the end.
Are you setting up a long-term presence in Switzerland? Don’t be tempted to sign a contract that exceeds 4 years. In the majority of cases, new cars are only guaranteed by their manufacturers for a period of 3 to 4 years. After this period, regular maintenance can put a strain on your budget even though you don’t even own the vehicle. It will be much more advantageous to opt for a relatively short-term lease and sign a contract for another new vehicle when it expires.
The credit score
Credit scores are often misleading. While in other countries such as the United States there is a fixed loan score linked to the social security number, this is not the case in Switzerland. The banks will carry out an in-depth analysis of your situation: income, the amount of your rent, the regularity of your payments…. Sometimes the application is refused because the borrower has forgotten to pay a bill by moving several years earlier. We advise you to go through a private CRIF verification solution to find out your score beforehand. This will also allow you to find out which options will enable you to improve your credit score and thus more easily obtain financing for your lease.
Return the vehicle at the end of the lease
Pay attention to the bodywork. Small scratches can be considered normal wear and tear and the dealer may not notice them. However, dents and scratches can also be charged heavily when they are considered damage. So be sure to find out in advance what is considered normal wear and tear and what is excluded.
Down payment too high
Even if you can afford it, beware of high intakes. Imagine that the car is stolen or suffers heavy damage for which you are not responsible. The dealer will probably collect damages, which is not the case for the consumer. Your contribution will therefore be considered permanently lost.
Chose too many options
Selecting all the options is not a bad thing in itself. However, not all of them will be useful to you. When searching, remember to use the filters so that you only come across a selection of relevant offers at the right price. The idea is to find a car that suits your needs and not to rent according to the criteria that suit the dealer.
All-in-one, the gowago.ch offer
The gowago.ch website offers leasing in all-in-one mode. It’s a formula designed to make your life easier, because the monthly payments include everything you need. All you have to do is bring the fuel you need to use your car. Thanks to this offer, you can considerably reduce your upstream expenses. The classic Swiss leasing formulas provide for taxes and other costs to be paid up front. Here, the vehicle is delivered to you with a set of winter tyres, but also with summer tyres that will allow you to drive safely in all seasons. In addition, the tyres are covered against wear and tear for the duration of your contract.
All-in-one is also a guarantee that there will be no hidden costs. When you go through the gowago.ch platform, the rates displayed are those you will actually pay, without any extra charge. In other words, you don’t have to do any calculations to be able to effectively compare the different leasing offers available. Do you have to service your car? Maintenance is included in the price when you entrust it to one of gowago.ch’s partner garages. All you have to do is show your maintenance card and you don’t have to worry about anything.
It is therefore advantageous to use this platform, which offers 100% online services. For example, you can take advantage of the best offers on the market before you move to Switzerland.